Judgment
PETER OYINKENIMIEMI AFFEN, J.C.A. (Delivering the Leading Judgment) : Introduction The High Court of Lagos State (coram: Y. O.
Idowu, J.) (“the lower Court”) declared the Respondent herein, Qualitem Pharmacy Ltd (“Qualitem” or “Respondent”] “the rightful owner of all that property located and situate at No. 102A Island Way, Dolphin Estate, Ikoyi, Lagos” and restrained the Appellant, Nigeria Deposit Insurance Corporation (“NDIC” or “Appellant”) and/or its agents, privies or anyone claiming through or under it from foreclosing, selling or trespassing on the property in a considered judgment delivered on 16/9/11 in Suit No.
LD/507/2004: Qualitem Pharmacy Limited v Nigeria Deposit Insurance Corporation, which lies at Pp. 388 – 410 of the records. Dissatisfied with the judgment, NDIC lodged the present appeal. The Amended Notice of Appeal filed on 4/10/18 relates back to the original notice of appeal filed on 9/12/16 with the leave of this Court. Briefs of arguments were filed and duly exchanged. The Appellant’s Brief filed on 18/9/18 was deemed properly filed on 20/9/18; the Respondent’s Brief was filed on 9/10/18, and the Appellant’s Reply Brief was filed on 29/10/18. This appeal was heard on 7/2/22.
Factual background The facts undergirding this appeal are straightforward and by no means complex or convoluted. Sometime in 2001, the defunct Metropolitan Bank Limited (“the Bank”) granted Qualitem a loan facility of N7.5m to finance the acquisition of a developed property situate at No. 102A Island Way, Dolphin Estate, Ikoyi, Lagos. The understanding was that the bank would have a lien on the title deeds until the principal sum and accrued interest thereon were liquidated.
Qualitem alleged that it had fully repaid the loan but the Bank held on to the title deeds and sought to foreclose on the property.
It was further alleged that the Bank opened a letter of credit in the sum N22,174,730.84 on 19/7/02 at the instance of Qualitem in favour of a named beneficiary in France at the exchange rate of N117 per US $1 (as agreed) prior to the introduction of the Dutch Auction System Central Bank of Nigeria (CBN) on 22/7/02 and the attendant surge in exchange rate from N117/1$ to N137 per US $1, but the Bank mulcted Qualitem with “a quantum of unwarranted interest” in excess of N10m even though the Dutch Auction System was not retroactive and could not nullify a concluded transaction.
